Brazil central bank unexpectedly holds rates amid currency selloff

BRASILIA, May 16 (Reuters) - Brazil’s central bank kept interest rates on hold unexpectedly on Wednesday, contradicting widespread forecasts of a cut as a selloff in emerging markets drove the nation’s currency to a two-year low.

The bank’s nine-member monetary policy committee, known as Copom, kept the benchmark Selic rate at 6.50 percent, after cutting the rate by 775 basis points since October 2016. Only two of 42 economists polled by Reuters had forecast the bank would stand pat. (Reporting by Bruno Federowski Editing by Brad Haynes)